Slide 1: Q3 2024 Earnings Report
Q3 2024 Earnings Report October 29, 2024
Slide 2: Forward-looking statements and Non-GAAP information
Forward-looking statements and Non-GAAP information This presentation contains forward-looking statements with predictions, projections and other statements about future events. These statements are made on the basis of management’s views and assumptions regarding future events and business performa
Slide 3: Q3'24 Earnings Report Summary
Q3’24 Earnings Report Summary Q3 Earnings Miss: Results Lower Than Expected As Customer-Driven Project Delays Persisted ( ) • Customer-Driven Project Delays Pushed Revenue & Associated Income Into Q4’24 and 1H’25 • Updated FY 2024 Guidance Reverting to Initial Outlook as Revenue Push-Outs Impact the
Slide 4: Profire Energy Pending Acquisition: Aligned with Strategic and Financial Objectives
Profire Energy, Inc. (Nasdaq: PFIE) Pending* Acquisition: Aligned with Strategic and Financial Objectives Accretive Strong N.A. Strong Transaction Market Position Financials • ~ $108M Acquisition (net of cash) • Niche Solution / Product Leadership in • ~ 30% Topline CAGR Since 2020 • ~ 9X EBITDA (be
Slide 5: Profire Energy Snapshot
Profire Energy Snapshot Business Overview Financial Profile / Accretive Acquisition • Description: Leading North American supplier of mission-critical • Purchase Price, net of cash: ~ $108M, ~9x pre-synergies combustion automation and control solutions and services to improve environmental efficienc
Slide 6: Q3'24 Financial Performance
Q3’24 Financial Performance 6
Slide 7: Q3 2024 Financial Performance
Q3 2024 Financial Performance Q3’24 YoY Q3 TTM YoY Highlights Backlog $438M 11% $438M 11% • Ended quarter with Record Backlog … will grow further in Q4 • Record Q3 Bookings – Very Balanced Orders $162M 12% $577M (5%) • Significant Energy Transition opportunities starting to book ... Book to Bill ~1.
Slide 8: Gross Profit TTM Trend – Continued Strong Margin Expansion
Gross Profit TTM Trend – Continued Strong Margin Expansion ($MM) TTM = Trailing 12 Month 200 .0 $190.5 $192.6 $181.3 39. 0% 190 .0 $171.0 180 .0 37. 0% 170 .0 160 .0 $155.5 34.8% $144.8 33.6% 35. 0% 150 .0 $136.7 140 .0 $128.2 32.4% 33. 0% 130 .0 31.4% $119.1 30.9% 31.0% 30.6% 120 .0 30.3% 31. 0% 11
Slide 9: Q3 2024 Cash Position and Liquidity Update
Q3 2024 Cash Position and Liquidity Update ($MM) Free Cash Flow Debt Position YTD 2023 YTD 2024 YoY Dec 31, 2023 133.2 Cash Used / (Generated) from Ops ($23) Gaap Net Income $10.2 $9.6 ($0.6) (incl. NCI) M&A + CapEx Investments $26.2 Bank Debt Repayments ($4.2) D&A $8.8 $10.5 Other Cash Used / (Gene
Slide 10: 2024 and 2025 Outlook
2024 and 2025 Outlook CECO 10 ENVIRONMENTAL
Slide 11: 2024 Full Year Outlook
2024 Full Year Outlook $M Book-to-Bill Revenues Adj EBITDA Free Cash Flow Initial FY 2024 Guidance: 1.05 to 1.1 $575 to $600 $65 to $70 50% to 70% of EBITDA YoY: up ~10% up ~17% • Raised FY’24 Guidance Mid-Year on Strength of Bookings Pipeline • Q3 Experienced Customer-Driven Project Delays in ~half
Slide 12: Keys to Robust Growth In 2025
Keys to Robust Growth In 2025 In Good Shape Exit 2024 With Strong Backlog and Robust Sales Pipeline and Improving 2H’24 Bookings Energy Transition + Data Center Trends Continue to Ramp Strong Multi-Year Trend Margins Expansion Continuing with Productivity, Portfolio Mix + G&A Leverage Continues Soli
Slide 13: Record Backlog Level = Continue The Steady Growth
($MM) Record Backlog* Level = Continue The Steady Growth $XXX = FY Avg. Backlog B2B = Book to Bill * Starting Backlog – Revenue + Net Orders +/- FX + Acquired Backlog = Ending Backlog $438 $TBD $391 $394 $391 $390 $378 $371 $356 $312 $291 $283 $289 $278 $161 $163 $162 $151 $149 $154 $214 $146 $145 $
Slide 14: Introducing Full Year 2025 Outlook
Introducing Full Year 2025 Outlook $M $80 - $90 $700 – $750 ~25% YoY Range $40 - $50 $10 - $20 $700M to $750M $575 – $600 Full Year Total Organic Up Revenue Up ~ 25% Low Double Digit YoY at midpt. FY’24 Est. ‘24 Carry Add’l ‘24 M&A FY’25 Est. Over Organic Deals Range $16 - $18 $90 – $100 Full Year $
Slide 15: Q3'24 Earnings Summary
Q3’24 Earnings Summary • Soft Q3 and YTD Results ... More Growth Around The Corner • Record Q3 Orders Very Encouraging That Large Industrial Projects Booking Again • Record Backlog + Expected Record Q4 Bookings = Strong Future Growth • Strategic Acquisitions Continue Our Transformational Journey • G
Slide 16: Appendix
Appendix Supplemental Materials and Non-GAAP Reconciliation Tables 16
Slide 17: M&A Update: WK Group Transaction Closed in Early October
M&A Update: WK Group Transaction Closed in Early October 2024 Business Overview Financial Profile / Transaction Metrics • TY2024E Sales: ~ $15M with ~ 20% aftermarket & short cycle • Current Footprint: Europe, SE Asia, China and India • Leading Engineered Industrial Air Solutions Provider: Industria
Slide 18: Orders & Backlog: Q3'24 Bookings & Backlog Acceleration
($MM) Orders & Backlog: Q3’24 Bookings & Backlog Acceleration TTM = Trailing 12 Month TTM Order Summary Quarterly Backlog Position $605 $577 $438 $560 $394 $391 11% (5%) YoY YoY +3% FY’23 YTD’24 B2B ~ 1.1x vs Q2 ~1.12x Q3'23 Q2'24 Q3'24 Q3'23 Q2'24 Q3'24 • Backlog at Record Levels • Near record quar
Slide 19: Sales: TTM Growth Impacted by Q3 Performance
Sales: TTM Growth Impacted by Q3 Performance … Expect to be ($MM) TTM = Trailing 12 Month back on trend in Q4 Quarterly Sales Summary $149 $138 $136 Q3 down 9% YoY YTD +2% • ~ (5%) customer delays in 3 significant projects in Industrial Air and Energy space • (4%) driven by sunsetting “big” jobs boo
Slide 20: Q3 Continues to Deliver Margin Expansion
Q3 Continues to Deliver Margin Expansion ($MM) TTM = Trailing 12 Month Q3'23 Gross Profit Q2'24 Q3'24 19. 0 Adj. EBITDA 30. 0% Gross Profit 60. 0 50. 0% 55. 0 17. 0 $16.1 25. 0% YoY up ~ $2M despite lower volume and margin +450 bps $49.0 $15.1 $14.3 45. 0% Continued improvement in backlog mix, execu
Slide 21: Revenue Excluding Acquisitions
Revenue Excluding Acquisitions (dollars in millions) Annual Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3 Annual 2022 2023 2023 2023 2023 2023 2024 2024 2024 2024 TTM Revenue as report in accordance with GAAP $ 422.6 $ 112.6 $ 129.2 $ 149.4 $ 153.7 $ 544.9 $ 126.3 $ 137.5 $ 135.5 $ 399.3 $ 553.0 Less revenue attribut
Slide 22: Non-GAAP Operating Income and Margin
Non-GAAP Operating Income and Margin (dollars in millions) Annual Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3 Annual 2022 2023 2023 2023 2023 2023 2024 2024 2024 2024 TTM Operating Income as reported in accordance with GAAP $ 22.2 $ 5.5 $ 8.6 $ 7.9 $ 12.7 $ 34.7 $ 7.7 $ 9.3 $ 7.2 $ 24.1 $ 36.9 Operating Margin in a
Slide 23: Non-GAAP Net Income, Adjusted EBITDA, and Margin
Non-GAAP Net Income, Adjusted EBITDA, and Margin (dollars in millions) Annual Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3 Annual 2022 2023 2023 2023 2023 2023 2024 2024 2024 2024 TTM Net Income as reported in accordance with GAAP $ 17.4 $ 2.0 $ 3.7 $ 3.3 $ 3.9 $ 12.9 $ 1.5 $ 4.5 $ 2.1 $ 8.1 $ 12.0 Acquisition and i
Slide 24: Adjusted Free Cash Flow
Adjusted Free Cash Flow (dollars in millions) Annual Annual Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3 Annual 2021 2022 2023 2023 2023 2023 2023 2024 2024 2024 2024 TTM Net Cash provided by (used in) operating activities $ 13.3 $ 29.6 $ (12.0) $ 11.4 $ 30.1 $ 15.1 $ 44.6 $ 1.2 $ 6.7 $ 15.1 $ 23.0 $ 38.1 Add: Earn-